Operating a business requires few investments from you as an entrepreneur. Starting from finances down to allotting time and effort, you need to dedicate these things for your business to work.
As you open your business, you should know that there are legalities that come into it, especially in bringing your business to the market. You need to comply with legal obligations to avoid any issues with the government. If you plan to open a new venture and wonder what the various legal forms and requirements are, you might want to stay on this page to get the information you need.
The following are the legal forms you need before you can start operating a business.
- LLC Operating Agreement. This agreement is crucial because it will define who is in charge of the business, the individuals who own the LLC itself, each obligation and responsibility, and tax information.
- Business Plan. In case you want to seek help with your funding, a business plan is required. A well-written business plan attracts investors to invest in your business. It should contain why you need the money, how you are going to spend it, and how you can earn it back.
- Employment Agreement. If you plan to hire individuals to work with you, you need an employment agreement. It contains the essential agreement between you and your employee about wages, duties, responsibilities, benefits, position, working hours, and termination and notice period. This is essential to avoid conflicts in the future.
- Employee Handbook. To avoid lawsuits between you and your employees, a handbook can clarify work-related issues.
- Non-Disclosure Agreement. It is essential in protecting your business’ intellectual rights, practices, and other proprietary information you shared with anyone else. All of these confidential documents should not be made public.
Before you can start operating a business, there are few essential things you need to have.
- Business Structure
This is the first requirement you need to have. You can opt to have a Limited Liability Company, also known as LLC, for a business structure. This type of system protects your assets from most business circumstances such as bankruptcy or when your business is sued. It means that your personal assets have nothing to do with or are separated from your business entity.
LLC cost varies depending on the state. You might be wondering how much does an LLC cost in Minnesota? If you’re planning to form an LLC in this state, filing your Articles of Organizations will cost you from $135 to $155. You can apply either online or personally. If you’re going to make any amendments, it will cost you $35 to $55.
- Business Name Registration
Choose a brand name that reflects the products or services you offer. Upon choosing, you need to ensure that the brand name is available and does not belong to someone else. After deciding, you need to register it through different ways such as an entity name, trademark, DBA, and domain name. Each way of registration has its own purpose.
- Tax ID Number
Employer Identification Number (EIN) is essential in hiring employees, opening your business bank account, and getting licenses and permits. You can apply for it at the IRS. You will need a federal tax number if you plan to hire employees, file tax returns, operate as a corporation, and use deferred tax-pension plans.
- Business Licences and Permits
You need to secure licenses and permits at a state and federal level. These documents are essential for your business to become legal. When you apply for the state level, expect that you need to pay fees depending on your business location and primary activities.
By completing the above legal requirements presented, you are now ready to go and legitimately build your startup as early as today!